HEXO Reverse Stock Split 2020: 12 Things for HEXO Stock Investors to Know

Hexo (NYSE:HEXO), a cannabis company based out of Canada, has announced plans for a reverse stock split.

Image of marijuana leaves growing on a plant.

Source: Yarygin / Shutterstock.com

Here’s what investors in HEXO need to know about the reverse stock split plan.

  • The company wants to consolidate down eight shares of HEXO stock into a single share.
  • The goal of this reverse stock split is to push shares of HEXO stock above $1 each.
  • That’s because the New York Stock Exchange doesn’t allow shares that trade below an average of $1 for a 30-day period.
  • Hexo definitely meets that criteria as its stock hasn’t traded above the $1 minimum since markets closed on June 12.
  • The company believes it’s in the best interest to continue trading on the NYSE and says consolidation is the easiest way to regain compliance.
  • Hexo will need shareholder approval before it can move forward with the reverse stock split plan.
  • It intends to hold a special meeting on Dec. 11, 2020, to have investors in HEXO stock vote on the consolidation plan.
  • The company will also need approval from the NYSE and Toronto Stock Exchange before the reverse stock split can take place.
  • So long as there are no issues, Hexo says it plans to have the consolidation of shares take place shortly after its meeting with investors.
  • The plan will have its total number of outstanding shares dropping from 483,445,248 to 60,430,656.
  • Hexo also notes that the plan won’t allow for fractional shares of its stock.
  • Instead, those shares will be rounded up or down depending on if they are greater or less than .5 shares.

HEXO stock was down 63.8% as of noon Friday.

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Article printed from InvestorPlace Media, https://investorplace.com/2020/10/hexo-reverse-stock-split-details/.

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